The Dutch don’t agree. “We are getting incredible inspiration for new concepts and new ways to serve clients,” says Mr. Mol of Rabobank. “I don’t see [the ban] as a constraint on the free market. Maybe the old way of doing things was a constraint on the free market.”

As long as there are ways to hide trading costs (which there are big time in USA) this is mostly fluff. The big money in mutual funds today is the hidden costs. Google search "hidden costs of mutual funds" and you'll see most of the story - but certainly not all. Average equity fund is charging about 2.70% per year but investors have no idea.

9:28 am June 22, 2013

Jim in Greensboro wrote:

Every investor should read "Stormy Weather" by Carl Hiaasen and pay special attention to the electric shock collar employed by Skink. The SEC should require every member of mutual fund management companies to wear such an electric shock collar that would be activated whenever they try to extract high fees and commissions from investors. Failing that, investors themselves should go out and purchase such a device for themselves, to be activated each time they consider choosing anything other than a low-cost fund, typically from Vanguard or Fidelity.

Note: 12-b-1 fees, loads, and hidden fees would result in the highest magnitude of shock. And 12-b-1 fees (originally "justified" to cover "distribution costs") on closed funds should be especially painful.

10:01 am June 22, 2013

cancerboy wrote:

The costs for Europeans to invest in funds have further to fall than those here. And while US Fund companies may pay formula fees for distribution, it's the adviser's firm that has the ultimate say on how and how much of that is received.

11:51 am June 22, 2013

George L. Morgan wrote:

This makes a great deal of sense. Pay people for doing what you want them to do. It is an opportunity for advisors to study how the market really works and develop a program that really works for the client. If they do the best job for the client they get the appropriate reward. As a 35 year member of the Omaha financial community I feel troubled by Mr. Headley remarks. First of all the wire houses already practice this. Secondly, the discount firms such as Omaha's TDAmeritrade have developed a business model that makes money in this environment.